Author: Ravi Ujji, CA
Credibility of Indian economy has been re-established in last 10 months. Economical reforms will decide India’s future and the budget 2015 is for the economic reforms.
Even though income tax rates have not changed much with respect to salaried class, higher importance has been given to overall development of the country. In sync with our ”Make in India” mission for promotion of domestic manafacturing for job creation , it is the responsibility of the government to create necessary platform for the same. Inspite of the fact that revenue from corporates are an important source of income for Government of India, reduction of corporate tax from 30% to 25 % is an example of encouraging corporates. In sync with simplification of tax procedure, various tax exemptions and incentives has been removed. Penalty provision in indirect taxes are being rationalized to encourage compliance and early dispute resolution.
Proposal for introduction of GST is a major is major reform in tax structure. According to experts, by implementing the GST, India will gain $15 billion a year. Because it will promote more exports, create more employment opportunities and boost growth. It will divide the burden of tax between manufacturing and services.
Game changing reforms like introduction of Jan Dhan, Aadhar and Mobile (JAM) for direct benefit transfer will reduce the leakage of subsidies. De-controlling diesel price is itself will have lot of impact on the economy.
The international monetary fund (IMF) forecasted that India’s growth will be 7.5 % in both 2015 and 2016. The world bank too projected India’s growth rate to be 7.5 % in 2015. Not only Indian economicts, but even world oranizations are telling that India is growing at faster rate.
Although few critics are of opinion that the budget favours corporates, industrial growth is necessary to help generate the employment opportunities for the people and in majority of the nations after agriculture it employs the highest number of people and therefore it can be said to be livelihood of many families.
It is a good budget for corporates and common man!